Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Q3 FY2021 Earnings Presentation
20 slides from Carpenter Technology's earnings presentation, Apr 30, 2021
Slide 1: 3rd Quarter Fiscal Year 2021 Earnings Call
CARPENTER TECHNOLOGY CORPORATION 3rd Quarter Fiscal Year 2021 Earnings Call April 29, 2021 Exhibit 99.1
Slide 2: Cautionary Statement
Cautionary Statement Forward-looking statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those proj
Slide 3: 3rd Quarter Fiscal Year 2021 - Tony Thene, President and CEO
3RD QUARTER FISCAL YEAR 2021 Tony Thene | President and Chief Executive Officer
Slide 4: Safety is Our Highest Value
Safety is Our Highest Value Total Case Incident Rate (TCIR) © 2021 CRS Holdings Inc. All rights reserved.
Slide 5: 3rd Quarter Summary
3rd Quarter Summary Quarterly results in-line with expectations as we remain focused on our key strategic priorities of employee safety, cash flow generation, enhanced liquidity and customer relationships Generated $189 million of free cash flow over the last four quarters Total liquidity of $539 mi
Slide 6: 3rd Quarter End-Use Market Highlights
3rd Quarter End-Use Market Highlights Sales ex-surcharge down 40% year-over-year; flat sequentially MARKET Q3-21 NET SALES EX. SURCHARGE ($M)* % VS. Q3-20 VS. Q2-21 COMMENTS AEROSPACE & DEFENSE $137.3 46% -53% -8% Customer inventories continue to fall with some beginning limited replenishment Sentim
Slide 7: Financial Overview and Business Update - Tim Lain, CFO
3RD QUARTER FISCAL YEAR 2021 FINANCIAL OVERVIEW AND BUSINESS UPDATE Tim Lain | Senior Vice President and Chief Financial Officer
Slide 8: Income Statement Summary
Income Statement Summary As anticipated, modest improvement in operating performance despite ongoing near-term demand headwinds *Detailed schedule included in Non-GAAP Schedules in Appendix. © 2021 CRS Holdings Inc. All rights reserved. $ in Millions, except pounds and per-share amounts Q3-20 Q2-21
Slide 9: SAO Segment Summary
SAO Segment Summary Q3 business results Sales flat sequentially on 3% lower volumes; continue to manage costs closely to address near-term market conditions Focused efforts to reduce inventory resulted in $15 million reduction in current quarter; $146 million of inventory reduction year-to-date $2.1
Slide 10: PEP Segment Summary
PEP Segment Summary Sales increased 20% sequentially due to increasing demand conditions across all business units driven by Titanium materials used in Aerospace and Medical applications Continued to realize benefits of cost and portfolio actions taken over the last several quarters principally rela
Slide 11: Free Cash Flow Summary
Free Cash Flow Summary Continued to drive targeted inventory reductions; $89 million of free cash flow generated fiscal year to date The clerical accuracy of certain amounts may be impacted due to rounding. *Detailed schedule included in Non-GAAP Schedules in Appendix. © 2021 CRS Holdings Inc. All r
Slide 12: Significant liquidity available as a result of strategic actions
Significant liquidity available as a result of strategic actions taken since onset of COVID-19 with additional opportunities to bolster even further Recently amended $300 million secured credit facility extends maturity to March 2024 No near-term debt maturities $553 © 2021 CRS Holdings Inc. All rig
Slide 13: Closing Comments - Tony Thene, President and CEO
3RD QUARTER FISCAL YEAR 2021 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer
Slide 14: Positioned for recovery with underlying fundamentals for continued growth
Positioned for recovery with underlying fundamentals for continued growth MARKET NEAR TO MEDIUM-TERM LONGER-TERM AEROSPACE Capacity available to support current pace of recovery Demand will exceed pre-COVID-19 levels, where capacity was already constrained DEFENSE Critical platforms requiring high-v
Slide 15: Foundation for Sustainable Long-term Growth
Foundation for Sustainable Long-term Growth Continued focus on safety and security of employees while maintaining operations at all facilities during COVID-19 pandemic Enhanced capital structure with increased cash flow, an amended credit facility and further extension of our maturities profile Deep
Slide 16: Appendix of Non-GAAP Schedules
APPENDIX OF NON-GAAP SCHEDULES
Slide 17: Non-GAAP Schedules: Adjusted diluted earnings (loss) per share
Non-GAAP Schedules (Unaudited) Adjusted diluted earnings (loss) per share © 2021 CRS Holdings Inc. All rights reserved. Management believes that earnings (loss) per share adjusted to exclude the impact of special items is helpful in analyzing the operating performance of the Company, as these items
Slide 18: Non-GAAP Schedules: Adjusted operating margin
© 2021 CRS Holdings Inc. All rights reserved. Non-GAAP Schedules (Unaudited) Adjusted operating margin, excluding surcharge revenue and special items Management believes that removing the impact of raw material surcharge from operating margin provides a more consistent basis for comparing results of
Slide 19: Non-GAAP Schedules: Free cash flow
© 2021 CRS Holdings Inc. All rights reserved. Non-GAAP Schedules (Unaudited) Free cash flow Management believes that the free cash flow measure provides useful information to investors regarding the Company’s financial condition because it is a measure of cash generated, which management evaluates f
Slide 20: Your trusted partner in innovation
Your trusted partner in innovation. Carpenter Technology Corporation (NYSE: CRS) is a global leader in high-performance specialty alloy-based materials and process solutions for critical applications in the aerospace, defense, medical, transportation, energy, industrial and consumer electronics mark
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